Buying a Home in North Georgia Archives

Experience matters!

The best time to buy real estate is today. Don’t wait to buy real estate. Buy real estate and wait. – Tommy Howard

Tommy Howard, CEO of Norton Commercial Real Estate, returns to North GA Business Radio during this segment to provide valuable insights into the impact of rising interest rates on our local real estate market.

With 37 years of experience, Tommy is an expert at interpreting market trends and data to guide informed decision-making. He offers a unique perspective on the challenges and opportunities presented by the current economic climate, shedding light on the implications for both commercial and residential real estate investments.

His extensive knowledge and practical advice make him a valuable resource for anyone navigating the complexities of the real estate market.

Tommy is speaking with us about:

How interest rates impact real estate investments and how to navigate this changing landscape.
The challenges of affordable housing in Georgia and some potential solutions for both investors and homebuyers.
The pivotal role of cash investors in real estate and how their strategies influence the market dynamics.
The impact of the labor shortage on the housing market and how it affects investment decisions.
How the gig economy is transforming the work landscape and its implications for real estate opportunities.

Georgia’s housing market is experiencing a significant affordability crisis. Driven by high demand and limited supply, home prices are quickly rising, creating a competitive environment that numerous potential homebuyers find challenging to navigate. Being well-versed in the market dynamics and seeking advice from experienced real estate advisors can help in tackling these obstacles.

Highlights from the show:

00:03:24 – Impact of Interest Rates on Real Estate
Tommy discusses the impact of interest rates on the purchasing of real estate, both commercial and residential, and how waiting for rates to come down may not be the best strategy.

00:10:46 – Property Value Appreciation
The conversation delves into the significant appreciation of property values over the past 20 years, with a 50% increase in home prices in Gainesville and the state of Georgia from 2020 to 2023.

00:13:02 – Insurance Considerations for Homeowners
Tommy emphasizes the importance of homeowners reassessing their insurance policies to ensure they are adequately covered, especially with the substantial increase in property values and construction costs.

00:14:08 – The Risk of Being Underinsured
The potential consequences of being underinsured, as illustrated by a real-life example, are highlighted, emphasizing the need for homeowners to revisit and adjust their insurance policies accordingly.

00:14:33 – Importance of Insurance Coverage
Tommy emphasizes the importance of paying attention to insurance coverage and recommends contacting the Norton agency for assistance. He also discusses the increase in home prices in Georgia compared to the national average.

00:15:43 – Housing Market Trends
Tommy discusses the housing market trends in Georgia, noting a 5% appreciation at the end of 2023. He predicts a continuation of steady growth in 2024, driven by supply and demand dynamics.

00:16:35 – Impact of Investors on Real Estate
Tommy highlights the impact of investors on the real estate market, stating that even if home prices depreciate, investors would prop the market back up. He also discusses the competition between homeowners and all-cash investors.

00:17:45 – Cash Transactions in Real Estate
Tommy shares insights on the high percentage of cash transactions in real estate, with 50% of transactions at his brokerage being all cash. He also mentions the increase in days on the market and the current supply-demand dynamics.

00:20:34 – House Rich and House Poor
Tommy discusses the concept of being house rich and house poor, emphasizing how homeownership has led to wealth accumulation for some, while others struggle to afford homes due to rising prices and lack of affordable housing options. He also addresses the trend of baby boomers transitioning to rentals.

00:28:49 – Current Labor Pool and Job Desirability
Howard discusses the current labor pool and the desires of young professionals coming out of college. He mentions the trend of wanting remote work and high salaries, and how businesses are making concessions to attract this labor force.

00:30:08 – Impact of Labor Shortage on Real Estate
Howard talks about the impact of the labor shortage on real estate, mentioning the need for infrastructure to support the labor force and the challenges in finding affordable housing for essential workers like teachers and policemen.

00:33:04 – Challenges for Labor Force and Major Industries
The conversation shifts to the challenges faced by the labor force, including commuting time and the difficulties in finding affordable housing close to work. Howard also highlights how major industries are struggling to recruit and retain employees.

00:34:50 – Proliferation of the Gig Economy
The discussion turns to the gig economy, with Howard sharing examples of how technology and the internet have enabled people to monetize their hobbies and interests. He mentions the prevalence of side gigs and the opportunities for creating wealth in one’s spare time.

00:39:28 – Importance of Professional Expertise
The conversation concludes with a reminder of the importance of seeking professional expertise, particularly in real estate transactions. Howard emphasizes the value of working with professionals in navigating the abundance of information available to consumers.